By FWi staff
FUTURES prices have been slipping back over the past couple of days while ex farm prices continue to inch upwards.
UK wheat values at LIFFE have fallen 55p with July prices dropping to £79.35/t and November values down to £76.0/t.
The recent fluctuations on the futures markets have beared little reflection to farm gate prices, said economist Gerald Mason at the Home-Grown Cereals Authority (HGCA), with delivered prices trading at a premium as the May contract came to an end.
Ex farm feed wheat has climbed about £1 over the week to £77/t.
But the futures are now coming back in line and with the small volumes being traded the recent falls in futures are unlikely to have much of an impact on ex farm prices, said Mr Mason.
The physical market has gained over the past week on the back of increased domestic demand and a lack of farmer selling.
The UK price is still uncompetitive against French wheat but the export trade is a less important factor in determining price than domestic consumption, said Mr Mason.
Improved prices have helped to stimulate some fresh sales of old crop stocks, said Cargills Ian Wallis.
But while supply has undoubtedly tightened in recent weeks, remaining supplies are believed to be ample to meet demand, he added.